R2009-182 - 2009-11-09RESOLUTION NO. R2009-182
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, AUTHORIZING A PERFORMANCE AGREEMENT BETWEEN THE
PEDC AND SIGNATURE COMPANIES.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That certain Performance Agreement by and between the PEDC and
Signature Companies, a copy of which is attached hereto as Exhibit "A" and made a part
hereof for all purposes, is hereby authorized and approved.
PASSED, APPROVED and ADOPTED this the 9th day of f�.o ember, A.D., 2009.
TOM REID
MAYOR
ATTEST:
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
THE STATE OF TEXAS
COUNTY OF BRAZORIA
PERFORMANCE AGREEMENT
This Performance Agreement (Agreement) is entered into by and between Pearland Economic
Development Corporation ("PEDC"), a corporation organized and existing under the laws of the
State of Texas, duly acting by and through Fred Welch, its Executive Director, and Signature
Eubanks & Associates Limited Partership, ("SIGNATURE EUBANKS & ASSOCIATES,LTD"), a
Texas Limited Partnership organized and existing under the laws of the State of Texas, duly acting
by and through it agent Mike Pollak, President Lenz Development Corporation, its General Partner.
WITNESSETH:
WHEREAS, on the 28th day August of , 2009, the Board of Directors of the PEDC, passed
a Resolution offering an assistance package to SIGNATURE EUBANKS & ASSOCIATES LTD for
purposes of developing a 45 acre tract of land in Pearland; and,
WHEREAS, the State of Texas, under the provisions of the Development Corporation Act,
allows the PEDC to grant economic development incentives to qualifying firms who apply for
assistance, and the PEDC Board and staff have determined this is a qualifying project for which
financial incentives may be granted; and
WHEREAS, the PEDC's objective is to maintain and/or enhance the general business
economic and employment base of the Pearland area for the long-term interest and benefit of the
City, in accordance with an annual business plan and long-range strategic plan; and
WHEREAS, the contemplated use of the Premises, as defined herein, and the contemplated
improvements to the Premises, as set forth in this Agreement, and the other terms hereof are
consistent with encouraging development within the City; and
WHEREAS, the Improvements as defined herein constitute a major investment within the
City of Pearland that will substantially increase the appraised value of property within the City and
will contribute to the retention or expansion of primary and secondary employment within the City;
and
WHEREAS, there will be no substantial adverse affect on the provision of City services or on
the City's tax base and the planned use of the Premises will not constitute a hazard to public safety,
health, or welfare; now,
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THEREFORE:
For and in consideration of the mutual agreements and obligations set forth below, the
sufficiency of which is hereby acknowledged by the parties hereto, SIGNATURE EUBANKS &
ASSOCIATES, LTD and PEDC mutually agree as follows:
1. The property to be the subj ect of this Agreement shall be that property described by
metes and bounds and map attached hereto as Exhibit "A" ("Premises").
2. Construction of SIGNATURE EUBANKS & ASSOCIATES, LTD improvements on
the Premises, described in Exhibit "B" ("Improvements") will cost approximately
$8,000,000("Minimum Investment") and shall be substantially complete within five years from
receipt of the Magnolia Road Improvements fronting the property at Exhibit "A"; provided, that
SIGNATURE EUBANKS & ASSOCIATES, LTD shall have such additional time to complete the
Improvements as maybe required in the event of a "force majeure" if SIGNATURE EUBANKS &
ASSOCIATES, LTD diligently and faithfully pursues completion of the Improvements. For
purposes of this agreement, the term "force majeure" shall mean any contingency or cause beyond
the reasonable control of SIGNATURE EUBANKS & ASSOCIATES, LTD including, without
limitation, acts of God or the public enemy, war, riot, civil commotion, insurrection, governmental or
de facto governmental action (unless caused by acts or omissions of SIGNATURE EUBANKS &
ASSOCIATES,LTD), fires, explosions or floods, and strikes. The date of completion of the facility
Improvements shall be defined as the date a Certificate of Occupancy is issued by the City of
Pearland to SIGNATURE EUBANKS & ASSOCIATES,LTD.
3. The term of this Agreement shall begin upon execution of the Agreement and
terminate as indicated in Paragraph 2 above unless terminated earlier by the PEDC as provided
herein. SIGNATURE EUBANKS & ASSOCIATES, LTD agrees and covenants that it will diligently
and faithfully, in a good and workmanlike manner, pursue the completion of the Improvements and
the Minimum Investment as good and valuable consideration of this Agreement. SIGNATURE
EUBANKS & ASSOCIATES, LTD further covenants and agrees that construction of the
Improvements will be in accordance with all applicable state and local laws and regulations or valid
waiver thereof. In further consideration, SIGNATURE EUBANKS & ASSOCIATES, LTD shall
thereafter, from the date a Certificate of Occupancy is issued until the expiration of this Agreement,
continuously operate and maintain the Premises as SIGNATURE EUBANKS & ASSOCIATES,
LTD limiting the use of said Premises to that use which is consistent with the terms of this
Agreement and for the general purpose of encouraging development or redevelopment in the City.
4. Subject to the terms and conditions contained herein, the PEDC shall provide SIGNATURE
EUBANKS & ASSOCIATES, LTD a grant for the purpose of constructing infrastructure
("Infrastructure Grant") to support the initial development of the Premises. Said Infrastructure Grant
shall be an amount equal to the estimated cost of construction of the infrastructure ("Infrastructure")
described in Exhibit "C" attached hereto, but in no event shall the Infrastructure Grant exceed
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$136,500. The Infrastructure Grant shall be used by the City of Pearland ("City") to construct the
Infrastructure in conjunction with the City's construction of the Magnolia Road Improvements in the
vicinity of the Premises. In order to comply with the terms of the Infrastructure Grant, SIGNATURE
EUBANKS & ASSOCIATES, LTD shall be required to commence construction of the
Improvements on or before five years from completion of the Road improvements cited above.
Commencement of construction shall be deemed to have occurred upon the City of Pearland' s final
inspection and approval of the slab or foundation for the Improvements. In no event shall the
initiation of site work by SIGNATURE EUBANKS & ASSOCIATES, LTD (i.e., dirt or drainage
work) constitute the commencement of construction of the Improvements. If, in the sole discretion of
the PEDC, it is determined that SIGNATURE EUBANKS & ASSOCIATES, LTD failed to
commence construction of the Improvements or complete construction of the Improvements as
required herein, then SIGNATURE EUBANKS & ASSOCIATES, LTD hereby authorizes the PEDC
to file a lien, in the amount of the Infrastructure Grant, on the Premises. Any lien filed pursuant to
this section shall be released by the PEDC upon SIGNATURE EUBANKS & ASSOCIATES, LTD
compliance with all of the terms of the Infrastructure Grant.
5. Upon commencement of the Improvements, SIGNATURE EUBANKS & ASSOCIATES,
LTD shall provide the PEDC with monthly invoices, documenting the SIGNATURE EUBANKS &
ASSOCIATES, LTD cost of the hnprovements. Upon the expiration of this Agreement, the PEDC
shall perform an accounting of the invoices provided by Signature Eubanks & Associates Ltd to
confirm that SIGNATURE EUBANKS & ASSOCIATES, LTD complied with the Minimum
Investment requirement of this Agreement. SIGNATURE EUBANKS & ASSOCIATES' failure to
comply with the Minimum Investment shall constitute a breach and default of this Agreement.
SIGNATURE EUBANKS & ASSOCIATES, LTD further agrees that the PEDC, its agents and
employees shall have the right to enter upon the Premises at any reasonable time to inspect the
Improvements in order to determine whether the construction of the Improvements is in accordance
with this Agreement and all applicable federal, state, and local laws, ordinances, and regulations or
valid waiver thereof. After completion of the Improvements, the PEDC or its agent, shall have the
continuing right to enter upon and inspect the Premises at any reasonable time, after 24 hours' notice
has been given, to determine whether the Premises are thereafter maintained and operated in
accordance with this Agreement and all applicable federal, state, and local law, ordinances, and
regulations. Notwithstanding any other provision of this Agreement, if the PEDC determines that a
violation of this Agreement or any federal, state, or local law, ordinance or regulation has occurred or
is occurring on the Premises, the PEDC may, in addition to any other authorized enforcement action,
provide to SIGNATURE EUBANKS & ASSOCIATES, LTD written notice of such violation. For
the purposes of this Agreement, SIGNATURE EUBANKS & ASSOCIATES, LTD shall have 120
days from the date of the notice to cure or remedy such violation. If SIGNATURE EUBANKS &
ASSOCIATES, LTD fails or refuses to cure or remedy the violation within the 120 -day period,
SIGNATURE EUBANKS & ASSOCIATES, LTD forfeits any right to the entire amount of the
Infrastructure Grant and the PEDC shall be entitled to exercise its rights to recapture the
Infrastructure Grant Funds in accordance with paragraph 7 below.. The failure of the PEDC to
provide notice of any violation does not constitute waiver of any of the PEDC's rights under the
3
terms of this Agreement.
6. SIGNATURE EUBANKS & ASSOCIATES, LTD agrees and covenants that the
information provided in the attached Application for Assistance (Exhibit 'D") is true and correct and
that any materially false or misleading information that is provided to the applicable parties involved
in this Agreement may be grounds for termination of the Agreement with possible liability for
recovery of funds or assistance received, as well as all costs and expenses incurred in the recovery of
such funds or assistance, including without limitation all attorneys' fees, and other costs and
expenses.
7. In the event that (1) the Improvements for which a grant for assistance by PEDC has been
granted are not completed in accordance with this Agreement; or (2) SIGNATURE EUBANKS &
ASSOCIATES, LTD allows its ad valorem or sales taxes owed to the applicable jurisdictions to
become delinquent and fails to timely and properly follow the legal procedures for protest and/or
contest of any such sales taxes; or (3) SIGNATURE EUBANKS & ASSOCIATES, LTD breaches
any of the terms or conditions of this Agreement, then this Agreement shall be in default. In the
event of a default under (1), (2), or (3) above, the PEDC shall give SIGNATURE EUBANKS &
ASSOCIATES, LTD written notice of such default, which notice shall be delivered by personal
delivery or certified mail to: Mike Pollack or his successor at SIGNATURE EUBANKS &
ASSOCIATES, Inc., 9525 Katy Freeway, Suite 130, Houston, Texas 77024. If SIGNATURE
EUBANKS & ASSOCIATES, LTD does not cure such default within sixty (60) days of the date of
said written notice, this Agreement may be terminated by the PEDC at its discretion without further
notice or liability to SIGNATURE EUBANKS & ASSOCIATES, LTD and SIGNATURE
EUBANKS & ASSOCIATES, LTD shall pay the full amount of the Infrastructure Grant to the
PEDC within thirty (3 0) days following receipt of such notice. In the event of a default by
SIGNATURE EUBANKS & ASSOCIATES, LTD, the PEDC reserves all legal remedies for the
recapture and collection of all funds granted pursuant to this Agreement, as well as all costs and
expenses incurred in the recapture and collection of same, including without limitation, attorneys'
fees, and other costs and expenses. Notwithstanding the provisions set forth herein, this Agreement
may be terminated at any time after the execution hereof by written agreement of both parties
8. The PEDC represents and warrants that the Premises does not include any property
that is owned by a member of its board or other governmental bodies approving, or having
responsibility for the approval of, this Agreement.
9. The terms and conditions of this Agreement are binding upon the successors and
assigns of all parties hereto. This Agreement may be transferred or assigned by SIGNATURE
EUBANKS & ASSOCIATES LTD only upon written permission by the PEDC in accordance with
the Resolution, which permission shall not be unreasonably withheld. No assignment shall be
approved if the assignor or assignees are indebted to the City for ad valorem taxes or other
obligations.
4
10. It is understood and agreed between the parties that SIGNATURE EUBANKS &
ASSOCIATES, in performing its obligations hereunder, is acting independently, and the PEDC
assumes no responsibilities or liabilities in connection therewith to third parties.
11. SIGNATURE EUBANKS & ASSOCIATES, LTD RELEASES, ACQUITS,
INDEMNIFIES, AND HOLDS HARMLESS THE PEDC, ITS OFFICERS, AGENTS,
EMPLOYEES, SUCCESSORS, AND ASSIGNS, FROM ANY AND ALL KINDS OF
CLAIMS, DEMANDS, LOSSES, DAMAGES, INJURIES, RIGHTS, CAUSES OF ACTION,
OR JUDGMENTS OF WHATSOEVER CHARACTER OR NATURE, INCLUDING
ATTORNEYS' FEES, COSTS AND EXPENSES, WHICH MAY ARISE OUT OF, OR BE IN
CONNECTION WITH THIS AGREEMENT. THE PROVISIONS OF THIS SECTION
REFLECT THE EXPRESSED INTENTIONS OF SIGNATURE EUBANKS & ASSOCIATES
LTDAND THE PEDC AND SHALL SURVIVE THE TERMINATION, EXPIRATION, OR
CANCELLATION OF THIS AGREEMENT.
13. This Agreement was authorized by Resolution of the Pearland Economic
Development Corporation (the "Resolution") at its board meeting on the 28th day of August, 2009,
authorizing the Executive Director to execute the Agreement on behalf of PEDC.
14. This Agreement is entered into by SIGNATURE EUBANKS & ASSOCIATES, LTD
pursuant to authority granted by its President and Chief Operating Officer, Mike Pollak, on the
1l day of De -G ..h.lpet- , 2009.
15. This shall constitute a valid and binding Agreement between the PEDC and
SIGNATURE EUBANKS & ASSOCIATES, LTD when executed in accordance herewith.
16. This Agreement is performable in Brazoria County, Texas.
17. SIGNATURE EUBANKS & ASSOCIATES, LTD agrees and covenants to certify
annually to the City, while this Agreement is in effect, that SIGNATURE EUBANKS &
ASSOCIATES, LTD is in compliance with each applicable term of this Agreement.
Witness our hands this \L "day of I)e, 2.004•
ATTEST)
L ' tevenor
PE C Secretary
PEARLAND ECONOMIC
DEVELOPMENT CORPORATION
By: Y\
Ramon Lozano
PEDC Interim Director
5
1211,3jo
APPROVED AS TO FORM: Cl
-t---,,
By: /_ � r `+"r
J Darrin(`4 V
M. Coker
City Attorney
City of Pearland
ATTEST: SIGNATURE EUBANKS & ASSOC TES, LTD
By: By:
Printed Name: Mike Pollak
Title: President Lenz Development Corporation
General Partner for Signature Eubanks &
Associates, LTD
6
THE STATE OF TEXAS
COUNTY OF BRAZORIA
BEFORE ME, the undersigned Notary Public, on this day personally appeared Ramon
Lozano, Interim Director for the Pearland Economic Development Corporation, known to me to be
the person whose name is subscribed to the foregoing instrument and acknowledged to me that he
executed the same for the purposes and consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE THIS ,2Pf DAY OF
J I`e.Yn I)&' , A.D., 2009.
o
THE STATE OF TEXAS
B
COUNTY OF 1)
NOTARY TJBLIc, STATE OF TEXAS
Printed Name: U ' ✓? fie h
Commission Expires: .• / 5 - 20 / 0
BEFORE ME, the undersigned. Notary Public, on this day personally appeared Mike Pollak,
President, Lenz Development Corporation, General Partner of SIGNATURE EUBANKS &
ASSOCIATES, LTD., known to me to be the person whose name is subscribed to the foregoing
instrument and acknowledged to me that he executed the same for the purposes and consideration
therein expressed.
4SGIVEN UNDER MY HAND AND SEAL OF OFFICE THIS /10-14 DAY OF
UNDER tfl� , A.D., 2009.
L-,
N ARY JBLI , STATE OF TEXAS
Printed Name: eh r4r -K• LS ->
My Commission Expires: -7• 4_6—,/
7
IMPROVEMENTS
The project will be the construction of a mixed use project consisting of any or all of office,
retail, medical office or hospital uses located on the Premises described in Exhibit "A".
The Improvements shall cost a minimum of $8,000,000.000.
8
EXHIBIT "C"
APPLICATION FOR ASSISTANCE FROM THE PEARLAND ECONOMIC DEVELOPMENT
CORPORATION
[INSERT]
9
EXHIBIT "D"
INFRASTRUCTURE TO BE CONSTRUCTED WITH GRANT
[INSERT]
Pearland EDC
•
Memo
To: George Sandars
From: Fred Welch
CC: PEDC Board
Date: 8/17/2009
Re: Signature Properties infrastructure request
George:
Mr. Pollack visited with staff in late June about a possible extension (sewer)to his 45 acre tract of land
at the intersection of Cullen and Magnolia Road.We have obtained information from the engineering
firm contracted by Mr. Pollack as to the cost for the utility extension and have an impact analysis
completed by Mr.Pollack using our consultant which shows the economics of this project.
Project description — Signature Eubanks & Associates Inc — Construction of a mixed use project
consisting of medical, retail,office and possible residential use on 45 acres of land at the intersection of
Cullen Parkway and Magnolia Road.
Retail/Office Mix Use 150,000 sq feet Investment $26,250,000
Medical Office Buildings 150,000 sq feet Investment $26,250,000
Specialty Hospital 100,000 sq feet Investment $50,000,000
Total Investment 350,000 sq feet $102,500,000
This project will be phased in depending upon market conditions and financing. Discussion has already
taken place with the City of Pearland concerning the use of the Health Facilities Finance Corporation to
issue revenue bonds for the hospital project. Initial investment would be for medical office building to
allow physicians using the hospital to set up their practice. This is a three to five year investment and
should be looked at by the PEDC Board as a 10 year project with a development agreement that will
provide for the initial infrastructure tied only to the first$26,500,000 of investment in mixed use office or
medical office whichever occurs first.
Assistance requested
Provide sewer service along the soon to be constructed Magnolia Road West of FM 1128. Extension of
the 12 inch sewer line proposed for Magnolia Road improvement project from its current terminus on
the west side of FM 1128 approximately 1,200 feet west.This sewer extension will also include a cross
over of approximately 100 feet in length to the north, under the proposed Magnolia Road,to serve the
northwesterly portion of this development(see site plan attached).
1
Estimated cost for this sanitary extension is $118,000. Possible engineering services to be negotiated
with City of Pearland and Projects Department would include Basic Engineering to complete the design
of the sewer project and bid it out per city standards $9750
Additional services to consider
Project Management
Preparation of documents beyond the scope to coordinate with the contractor doing work on
Magnolia
$8750
Total estimated cost $136,500
This is a multi faceted project that will take several years to develop. This is the first phase of what is
needed to create a shovel ready site for development.Staff believes the construction cost of$118,000
may be high in today's market but we will not know until the project is bid.The engineering fee of$9750
appears correct for the scope of work. The additional costs may be costs that can be assumed in part
with the Projects Department as they manage the Magnolia expansion and staff would like to pursue
this with project to see if any savings can be achieved.We recommend moving forward with the project
as part of the Magnolia Road extension. This would commit approximately 20%of available business
incentives for 2009-2010 but it appears to be a pretty safe investment.
Recommendation
Staff would recommend approval of this project provided Signature Companies (Signature Eubanks
and Associates)be willing to enter into a development agreement that causes construction on at least
$26,500,000 of improvements to take place within five years of the installation of the sewer line. If
construction of at least $26,500,000 of improvements is not completed within five years Signature
Companies would need to reimburse PEDC for the improvements under some sort of claw back
provision.
There will be additional incentives sought from the city as this development moves forward. Tax
abatement,drainage, comprehensive planning, hospital bond financing are all possible considerations
for this and future PEDC Boards or City Council to consider. This can be accomplished through
amendments to the development agreement created under this incentive or future development
agreements tied to phases of development with the project.
•
Fred Welch
•Page 2
•
Signature Eubanks & Associates, Ltd.
9525 Katy Freeway
Suite 130
Houston,TX 77024
June 5,2009
Pearland Economic Development Corp.
Mr.Fred Welch
3519 Liberty Drive
Pearland,TX 77581
Dear Fred:
Attached please find an assistance application for a sewer line extension to property
owned by Signature Eubanks&Associates,Ltd. located west of the intersection at FM
1128 and Magnolia Parkway.
Thank you for your consideration of the request.
Respectfully,
SIGNATURE EUBANKS &ASSOCIATES, LTD.
By: Lenz Development—gene partner
Michael H.Pollak
President
Assistance Application Form
Applicant Information
Company Name: tcrl ca rt �ul«�L} � :� /J.���.+<. J, t 7J
Address: I4752,5.-k=/ty J!_ily/./
�. /30
Su+,. . 77c254
Company Official: /4-61. '
Title: RZ1d c 6,J /—.C%Jz , c/c.G711 wt/6.2?95 - a e
Telephone: 7/3 7P7 3L/41
FAX: '7/3 1S z.36z,
Please submit third party reviewed financial statements or IRS tax filings for the prior
two years.
Project Description
Applicant MUST attach a statement fully explaining the project. Describe future site -
improvements, business operations, and economic impacts of the proposed project. If the
company will be required to obtain any State or Federal permits,please detail which permits and
why they are required. The company must ask for assistance from the PEDC.
Description of Facility(Select those that apply)
Corporation( ) Partnership( ) Proprietorship( ) New Plant ( )
Expansion ( ) Modernization ( ) Manufacturing( ) Sales ( )
Office/Professional ( ) Other Industry ( ) Distribution Center. ( )
Project Location(Attach site plan):
Total Capital Investment(Excluding Land Value): $
Estimated Expenses of Bringing Utilities to Site: $ /d(o 6 0 0
Building Size(Sq.Ft.): 64-4. 7 .400, OCX)
Estimated Moving Expenses: $ /
Estimated Annual Sales Tax Contribution: $
Estimated Value of Fixed Equipment:$
Sales Tax Sent to State of Texas(Last year):$
Company Profile:Employment:
Current Employment: Employment in 5 years:
Gross Annual Payroll: $ Annual Payroll in 5 years: $
Average Hourly Wage: $ Avg.Wage in 5 years:$
PEARLAND ECONOMIC DEVELOPMENT CORPORATION
ASSISTANCE APPLICATION FORM
SIGNATURE EUBANKS &ASSOCIATES,LTD.
PROJECT DESCRIPTION:
This request is to extend the sewer line west along the new Magnolia Parkway. It will
provide service to 15 acres on the north side of the boulevard and 8 acres on the south
side as shown on the site plan. In December,2008, Council approved zoning for hospital
or other medical services on these tracks. We are currently master planning the entire 45
acres to accommodate a hospital and complementary uses. As we pursue hospital
candidates it is imperative that utilities are readily available.
MINUTES OF A REGULAR MEETING OF THE PEARLAND ECONOMIC DEVELOPMENT CORPORATION
("PEDC") BOARD OF DIRECTORS OF THE CITY OF PEARLAND, TEXAS HELD MONDAY, AUGUST 24,
2009 AT 5:00 P.M., 2N° FLOOR CONFERENCE ROOM, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND,
TEXAS.
Call to order
The meeting was called to order at 5:00 p.m.with the following present
BOARD MEMBERS
President George Sandars
Vice President Ed Thompson
Secretary Lucy Stevener
Board Member Helen Beckman
Board Member Gary Idoux
EX-OFFICIO MEMBERS
City of Pearland Mayor Tom Reid
City of Pearland Bill Eisen
STAFF MEMBERS
Fred Welch
RamOn Lozano
Jenny Brannon
Janice Vega
Minutes of a Regular Meeting
August 24, 2009
Page 2
Il. Approval of Minutes: Vice President Ed Thompson made the motion, seconded by Board Member
Helen Beckman to approve the minutes of the Regular Meeting of June 22, 2009, Special Meeting of
July 8, 2009, Public Hearing and Special Meeting of July 13, 2009.
Motion Passed: 5-0
Ill. Board Member Reports: President George Sandars attended the Dawson High School grand
opening. Vice President Ed Thompson attended The Commerce Center opening, the PEDC
Strategic Plan roll out, and the NBCEA strategic planning meeting_ Secretary Lucy Stevener and
Board Member Gary Idoux attended The Commerce Center opening. Board Member Helen
Beckman also attended The Commerce Center opening and the PEDC Strategic Plan roll out
IV. Financial Report
A. Investment Report—June 2009: Finance Director Claire Bogard gave the report.
B. Monthly Financial Report—June 2009: Finance Director Claire Bogard gave the report.
V. Executive Director's Report Director Fred Welch reported that Freese and Nichols has signed a
lease with Pearland Town Center for office space.
VI. Public Comments: None
VII. New Business
A. Excuse Absence: Vice President Ed Thompson made the motion, seconded by Secretary Lucy
Stevener to excuse the absence of Chairman George Sanders and Board Member David
Stedman from the Public Hearing and Special Meeting of July 13,2009.
Motion Passed: 4—0
Abstained: 1
B. Pearland Area Chamber of Commerce Report President Carol Artz gave a quarterly report.
Vice President of Tourism Bryan Roller gave an update from the Convention and Visitors Bureau.
C. Northern Brazoria County Education Alliance Report Director Terrie Morgan gave a quarterly
report.
D. Policy for Old Town Site Incentives: Director of Old Town Site Redevelopment Kyler Cole gave
an overview of the proposed incentive policy for the Old Town Site area.
E. Marketing Report: Assistant Director RamOn Lozano gave an update on marketing events and
programs.
F. PEDC BY2010 Budget: Board Member Helen Beckman made the motion, seconded by Board
member Gary Idoux to amend and re-adopt the PEDC FY2010 Budget.
Motion Passed: 5—0
G. Galveston Federal Bench Resolution: Secretary Lucy Stevener made the motion, seconded by
Board Member Helen Beckman to adopt a resolution in support of keeping the Federal Judge
and staff located in Galveston,Texas.
H. Bond Inducement Resolution: Vice President Ed Thompson made the motion, seconded by
Board Member Gary Idoux to approve the Inducement Resolution.
Motion Passed: 5-0
Minutes of a Regular Meeting .
August 24, 2009
Page 3
I. EDA Infrastructure Grant: No action was taken.
J. Economic Development Incentives — Prospect #0911 — Prospect addressed the Board of
Directors.
VIII. Other Business
Executive Session Under Texas Government Code
The meeting was adjourned to enter into Executive Session at 7:01p.m.
1. Section 551.087 — Deliberations Regarding Economic Development - Prospect
#0908.
2. Section 551.087—Deliberations Regarding Economic Development-Magtech.
3. Section 551.087—Deliberations Regarding Economic Development-Speed Shore.
4. Section 551.087 — Deliberations Regarding Economic Development - Prospect
#0912.
5. Section 551.087 — Deliberations Regarding Economic Development - Prospect
#0911.
•
6. Section 551.087 — Deliberations Regarding Economic Development - Business
Center Drive Expansion.
7. Section 551.087 — Deliberations Regarding Economic Development - Spectrum
Boulevard West.
The Board reconvened into Open Session at 8:19 p.m.
New Business Continued:
• K. Economic Development Incentives—Prospect#0908: No action was taken.
L. Economic Development Incentives— Magtech: Vice President Ed Thompson made the motion,
seconded by Board Member Helen Beckman to approve an infrastructure grant to Magtech for
the construction of a driveway as part of the Magnolia expansion, at a cost not to exceed
$100,000.00. A Development Agreement between Lingo Properties and Magtech will be drafted
by the City Attorney where each will pledge to remain in Pearland, Texas for three years beyond
completion of the improvements and maintain current levels of employment.
Motion Passed: 5-0
M. Economic Development Incentives—Speed Shore: Board Member Gary Idoux made the motion,
seconded by Secretary Lucy Stevener to approve a grant to Speed Shore in the amount of
$36,000.00 to cover the cost of impact fees to connect city services to the property.
Motion Passed: 5-0
N. Economic Development Incentives— Prospect#0912: Vice President Ed Thompson made the
motion, seconded by Board Member Helen Beckman to award a grant of$50,000.00 and during
the first three years $2,500.00 per full time job with a gross salary in excess of $40,000.00 -
annually. Total grant not to exceed$87,500.00. Eligible jobs must be for employees who
•
•
Minutes of a Regular Meeting
August 24,2009
Page 4
spend a minimum of twenty hours conducting work at the Shadow Creek Business Center
location. Grant also contingent upon verification of the company's ownership.
Motion Passed: 5-0
O. Economic Development Incentives— Prospect#0911: Vice President Ed Thompson made the
motion, seconded by Secretary Lucy Stevener to approve a grant to Prospect#0911 for a sewer
line installation. Amount of grant not to exceed $136,500.00 and provided that the company be
willing to enter into a Development Agreement where $26,500,000.00 of construction
improvements would take place within five years of the installation of the sewer line. If
$26,500,000.00 of construction improvements is not completed, company will reimburse
Pearland Economic Development Corporation for the cost of the grant.
Motion Passed: 5-0
P. Infrastructure Grant— Business Center Drive Expansion: Board Member Gary Idoux made the
motion, seconded by Board Member Helen Beckman to approve an infrastructure grant to pay for
fifty percent of the road project on Business Center Drive for up to $4,000,000.00, contingent
upon owner dedicating right-of-way and the land.
Motion Passed: 5-0
Q. Infrastructure Grant—Spectrum Boulevard West No action was taken
IX. Adjournment
Time: 8:30 p.m.
Minutes approved as submitted and/or corrected this I Ff day of
'EPI-v_rlt��,E i ,A.D.,2009.
George Sanders, Chairman
ATTEST: i�I =
�_.� 'J_`ucy Stevener, Secretary